How to Determine the Cost of Real Estate

September 22, 2017 Facebook Twitter LinkedIn Google+ Online Auction

Determining the price of real estate whether it’s a residential home, multiple units, commercial with apartments. When you purchase real estate you are always going to be wondering if you got a good price on the property and going to be restless. Let me put your mind at ease because today I am going to tell you how to get a fair idea of how much they are worth. This kind of information is used by agents and appraisers to determine the price of real estate.

A Comparative Market Analysis (CMA) is a tool used to determine a fair market value for real estate in any area of the country. This is used when a seller wants to sell his/her property with a real estate office. When a buyer purchases a property it’s used by the buyers agent and the appraiser. Sellers sometimes raise the price of the property wanting more than what prices really reflect. If you made an offer you are at this point of the process. How to do a Comparative market analysis is actually pretty simple all you need is a couple of hours. If you have seen about 4 to 6 properties that are in the same area you should have an idea of what condition the properties are. That’s if you didn’t raise the price in the middle of seeing properties. If you are working with a realtor he should have done a Comparative Market Analysis to defend your offer.

The first thing is get 3 to 10 properties that are similar to the one you are offering. These properties have to have been sold and I don’t mean the pending contract properties. They have to be closed on with in the last six months. You don’t have to go back that far, 3 months should do the trick. In case you don’t find any then go to 6 months. What you look for is at least 3 properties that have the same characteristics of the property you are interested in. Look at the room count, lot size, garage, basement and how old is the roof, furnace, air condition, pluming, electrical. With this you now have your Comparative Market Analysis if you want take a drive by the ones you picked and now you are done.

I have been doing real estate for 12 years in Chicago. This is just some useful information I though I share. Best time to invest in real estate is now. Want to learn more from the comfort of your home just go to you can start learning in 5 minutes at your own pace instant download no waiting for delivery.

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